Court orders petitioner to pay Rs.3 lakhs tax within 4 weeks for 2009-2010 assessment. Appeal to be disposed promptly.

The court directed the petitioner to pay Rs.3 lakhs towards tax and interest for the assessment year 2009-2010 within four weeks to the second respondent. Upon payment, the appeal would be promptly disposed of by the first respondent. Recovery of the remaining amount was stayed pending the appeal outcome, and any attachment of the petitioner's bank account related to the dues was to be lifted upon payment. The Writ Petition was granted with no costs imposed, and connected Miscellaneous petitions were closed.

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Issues:
Challenging Assessment Order under Income Tax Act, 1961

Analysis:
The petitioner filed a Writ Petition challenging the Assessment order passed by the second respondent under Section 143(3), read with section 144 of the Income Tax Act, 1961. The petitioner had also appealed against the said order before the first respondent. During the hearing, the petitioner's counsel stated that the petitioner would pay Rs.3 lakhs, which is 1/3 of the amount payable as arrears of tax and interest. The petitioner requested that upon payment, the first respondent should hear the appeal and decide it on merits and in accordance with the law. On the other hand, the respondents' counsel argued that the petitioner should pay 50% of the tax and interest due before any order is passed.

The court directed the petitioner to pay Rs.3 lakhs towards the tax and interest for the assessment year 2009-2010 within four weeks to the second respondent. Upon this payment, the appeal filed by the petitioner before the first respondent would be disposed of promptly and in accordance with the law. However, the recovery of the remaining amount due from the petitioner would be stayed until further orders are passed in the appeal pending before the first respondent. Any attachment of the petitioner's bank account by the second respondent related to the mentioned dues would be lifted upon the payment of Rs.3 lakhs by the petitioner.

The Writ Petition was granted accordingly with no costs imposed, and the connected Miscellaneous petitions were closed as a consequence of the judgment.

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